02236cam a22003017 4500001000700000003000500007005001700012008004100029100002000070245015400090260006600244490004200310500001900352520079400371530006101165538007201226538003601298690013401334690008501468690007701553690006701630700001901697700002401716710004201740830007701782856003801859856003701897w16768NBER20180218003139.0180218s2011 mau||||fs|||| 000 0 eng d1 aFullerton, Don.10aDoes the Indexing of Government Transfers Make Carbon Pricing Progressive?h[electronic resource] /cDon Fullerton, Garth Heutel, Gilbert E. Metcalf. aCambridge, Mass.bNational Bureau of Economic Researchc2011.1 aNBER working paper seriesvno. w16768 aFebruary 2011.3 aWe analyze both the uses side and the sources side incidence of domestic climate policy using an analytical general equilibrium model, taking into account the degree of government program indexing. When transfer programs such as Social Security are explicitly indexed to inflation, higher energy prices automatically lead to cost-of-living adjustments for recipients. We show results with no indexing, 100 percent indexing, and partial indexing based on our analysis of actual transfer programs. When households are classified by annual income, the indexing of U.S. transfers is not enough to offset the regressive uses side, but when they are classified by annual expenditures as a proxy for permanent income, transfer indexing does offset regressivity across the lowest income groups. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies2Journal of Economic Literature class. 7aH55 - Social Security and Public Pensions2Journal of Economic Literature class. 7aQ43 - Energy and the Macroeconomy2Journal of Economic Literature class. 7aQ58 - Government Policy2Journal of Economic Literature class.1 aHeutel, Garth.1 aMetcalf, Gilbert E.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w16768.4 uhttp://www.nber.org/papers/w1676841uhttp://dx.doi.org/10.3386/w16768